Caesars Unveils $185M Makeover for Bill’s Gamblin’ Hall

By Alex Girda, Associate Editor

The city of Las Vegas might look back one day and identify the period following the Great Recession as a watershed era. Today’s trends—reinventing aging properties, a new focus on business, art and sport, a fresh take on the Strip’s megaresorts—are likely to shape the city’s success for years to come.

The latest vintage venue targeted for a makeover is Bill’s Gamblin’ Hall & Saloon. Caesars Entertainment shuttered the property on Feb. 3 and will re-launch it in 2014 as the Gansevoort Las Vegas after a $185 million renovation, The Las Vegas Sun reported.

In Bill’s place will be a boutique resort co-owned by Caesars; New York City-based Gansevoort Hotel Group; and Victor Drai, a high-end nightclub owner who also owns a location at the site. Gansevoort Las Vegas will offer guests 188 guest rooms, a Parisian apartment-style design by local company Tandem, and 19 suites. Also planned are a 40,000-square-foot casino, a lobby bar, lounge and retail space.

Drai’s current venue will remain in its location after the renovation, joined by the 65,000-square-foot Drai’s Beach Club and Nightclub near the hotel’s new rooftop pool.

Rendering: Caesars Entertainment

Genting Group Eyes $2B Resort on Former Stardust Site

By Alex Girda, Associate Editor

In a step that could help speed the comeback of large-scale development on the Las Vegas Strip, Genting Group wants to build a $2 billion resort on the site once proposed for the abandoned Echelon project, the Las Vegas Review-Journal reported.

The Malaysian hospitality company, which bought the parcel from Boyd Gaming Corp. for about $350 million, plans a 3,500-key hotel and a 175,000-square foot casino component for the project’s first phase. The site is the former location of the Stardust.

Taking a cue from Genting’s properties in New York City and Singapore, the property would be named Resorts World Las Vegas. According to the Review-Journal, the new attraction is set to open in 2016, featuring a palette of dining choices and  plenty of retail space, as well as 500,000 square feet of convention space, outdoor pool and a theater.

Image of Resorts World Genting, Malaysia, courtesy of user Thecatcher09 via Wikimedia Commons

Convention Center Officials Unveil $2.5B Makeover Plan

By Alex Girda, Associate Editor

The Las Vegas Convention and Visitors Authority Board of Directors has revealed a $2.5 billion plan to transform the Las Vegas Convention Center and the area around it into a vibrant business hub. Dubbed the Las Vegas Global Business District, the revamped area would include a new World Trade Center facility and a multimodal transportation center as well as an overhaul of the convention center complex itself.

The project would amount to the biggest makeover in years for the 54-year-old facility, which provides nearly one-quarter of Las Vegas’ 10.6 million square feet of meeting space. In 2011, the city’s meeting and convention business generated an estimated $6.3 billion in economic activity.

During the next two years, the agency will identify financing, develop a detailed plan for the program, acquire parcels for redevelopment and start the $150-million first phase of the renovation.

When complete, the convention center upgrade will provide a new entrance on Joe W. Brown Drive, improved meeting and exhibit space, technological upgrades, a grand concourse eonnector with more lobby space and new food concessions.

Image courtesy of The Las Vegas Convention and Visitors Authority at lvcva.com

Landwell, D.R. Horton Launch Residential Projects

By Alex Girda, Associate Editor

Recent signs of improvement in the Las Vegas Valley residential market are prompting homebuilders to launch new construction.

In Henderson, Landwell Development is in the early stages of a 2,200-acre master planned community project and has begun grading, the Las Vegas Review-Journal reports. As part of the project’s first phase, Landwell plans to build about 1,400 residential units on 320 acres near the Union Village health care-focused project. Dubbed Cadence, the community will feature a neighborhood park, a retail center and office space, say Landwell officials.

The project will require the rerouting of Mohawk Drive and extensive improvements to Galleria Parkway, the Review-Journal adds.

Landwell is not alone in its plans to step up development. Also entering the competition, D.R. Horton plans to build 305 units on 63 acres it acquired near Horizon Ridge Parkway and Gibson Road. 

TM Equities Picks Up Henderson M-F Complex for $30M

By Alex Girda, Associate Editor

In the Las Vegas Valley’s biggest multi-family deal so far this year, an affiliate of TM Equities has acquired the Adobe Ranch property in Henderson from Capri Capital Partners for approximately $30 million, VegasInc magazine reported.

Salt Lake City-based TM Equities focuses on residential properties containing at least 100 units. Capri Capital Partners, which is headquartered in Chicago, specializes in strategic acquisitions in growing markets.

Located at 1350 Kelso Dunes Avenue in Henderson, Adobe Ranch is a 234-unit complex featuring one- and two-bedroom floorplans. The 14-acre community is located near the Galleria Mall, the Sunset Station Casino and Theater and a variety of dining venues.

Completed in 2003, Adobe Ranch was acquired four years later by Capri Capital Partners, according to VegasINC. Amenities include a fitness facility, a business center and swimming pool. Adobe Ranch also offers easy access to the I-215 and I-95.

Doing Family Markets 42 Acres of Searchlight, a Small Mining Town With a Colorful Past

By Alex Girda, Associate Editor

Much of Searchlight–that small mining town with an often colorful past–is going on the market.

The Las Vegas Sun reports that the Doing family is planning to sell its local holdings, which include a casino, restaurant and a motel. The owners are counting on the appeal of Searchlight’s location near Las Vegas to draw prospective bidders.

Upwards of 20 different lots are for sale across a 42-acre expanse. The properties include the Searchlight Nugget Casino and an adjoining restaurant. Some assets offer a measure of notoriety; the 21-key El Rey Motel was once a brothel that was reputedly popular with workers who built the Hoover Dam.

Another historical footnote: a century ago, Searchlight was a candidate to serve as the seat of Clark County before the selection of Las Vegas. Notable natives include Senator Harry Reid.

Veer Towers Units Hit Market, Beef Up City’s High-Rise Condo Inventory

By Alex Girda, Associate Editor

As the city’s residential market slowly pulls out of its long slump, the availability of high-rise condominium units is on the rise. The Las Vegas Review-Journal reports that a large number of condominiums in CityCenter’s Veer Towers have hit the market. The move comes just two months after a New York-based investment group acquired most of the available condo stock at the twin 37-story towers developed on the Las Vegas Strip by MGM International. In all, 100 of the previously acquired 427 units have been put up for sale.

The 100 units increase the supply of high-rise condo stock available in Las Vegas by more than one-quarter, the Review-Journal reported. About 375 of the units are currently on the market citywide, local professionals told the publication. Veer Towers is a LEED Gold-certified development at the heart of CityCenter. Helmut Jahn’s design for the 480-foot towers incorporates a distinctive five-degree slope that makes the towers appear to lean.

According to the Review-Journal, prices will begin at $228,000 for a 534-square foot studio apartment. Each tower houses 337 luxury condo units ranging in size between 500 and 1,500 square feet. Amenities include a spa, fitness center, cabanas and an outdoor patio.     

Image courtesy of user Vrysxy via Wikimedia Commons

AVS Housing Group Takes Charge of UNLV’s On-Campus Student Housing

By Alex Girda, Associate Editor

A joint venture of The Scion Group, and affiliates of American Nevada Co. and the Vista Group, has assumed management of on-campus student housing for the University of Nevada, Las Vegas.  AVS Housing Group the will handle marketing, resident contracts, room assignments, facility planning and management, financial and vendor management, as well as residence hall operations. UNLV and AVS reached a final agreement last month, and AVS assumed its responsibilities on Jan. 1.

Previously, AVS served as executive provider of consulting, planning and management for UNLV’s on-campus housing in 2010, a responsibility that was then followed by two Scion-led consulting projects.

Last year, the school asked AVS to take over as property manager and operator of its six-building, 1,500-bed on-campus housing facilities, which are organized in a residence hall system.

Mitchell Smith, Scion’s vice president for property operations, stated that the company plans “to apply here what we’ve learned in over 100 campus consulting engagements and in managing housing both on and off campus across the country.”

The joint venture is tasked with increasing the number of students living on campus, raising resident retention and satisfaction, and improving financial performance.

Photo courtesy of University of Nevada Las Vegas at www.unlv.edu

Inland Diversified Pays $296M for 1.7 MSF Retail Portfolio

By Alex Girda, Associate Editor

Inland Diversified Real Estate Trust Inc. has acquired the majority interest in 1.7 million-square-foot Las Vegas Valley retail portfolio. A joint venture  of an Inland Diversified subsidiary and affiliates of seller Territory, Inc., paid $296.3 million for six retail centers, which are anchored by grocery stores or home improvement stores.

Developed between 1999 and 2009, the portfolio features a tenant roster that includes national retailers like Walmart, Sam’s Club and Lowe’s Home Improvement. The  centers are located in well-populated, economically stable areas, securing the new owners a solid customer base that has, until recently, generated strong occupancy rates.

The lportfolio consists of the following properties:

-          Centennial Center – 857,498 square feet; anchor tenants are Walmart Supercenter, Sam’s Club and Home Depot.

-          Centennial Gateway – 193,009 square feet; located near Centennial Center; anchor tenants are Sportsman’s Warehouse, 24 Hour Fitness, Walgreens and Smash Burger.

-          Eastern Beltway – 525,225 square feet; anchored by Walmart Supercenter and Sam’s Club. Other notable tenants are Ross Dress for Less, Office Max, Petco and Hallmark.

-          Eastgate – 96,604 square feet; tenant roster features Office Depot, Party City, Payless ShoeSource and Bath & Body Works. The center is shadow anchored by Walmart Supercenter, Del Taco and Red Lobster.

-          Cannery Corner – 44,472 square feet; tenants include Famous Dave’s BBQ, Five Guys Burgers and Fries, Chipotle Mexican Grill; shadow anchored by Lowe’s Home Improvement and Sam’s Club.

-          Lowe’s Plaza – 30,408 square feet; shadow-anchored by Lowe’s Home Improvement; tenant roster includes Qdoba Mexican Grill, FedEx and Starbucks.

Photo: Business Wire

U.of Phoenix Consolidates Footprint; Officials Weigh Growth for Tahoe

By Alex Girda, Associate Editor

In a belt-tightening move, the University of Phoenix is consolidating its footprint in the Las Vegas Valley. Early next year, the institution will move into a 44,000-square-foot space in Summerlin, VEGAS INC reported on Dec. 18. Its new location accounts for about 45 percent of a three-story, 98,000-square-foot building next to the Nevada Cancer Institute near Town Center Drive and the 215 Beltway.

The building’s owner is an affiliate of Greenspun Corp., which also owns VEGAS INC and the Las Vegas Sun. Bret Davis of Jones Lang LaSalle Inc. represented the University of Phoenix in the lease.

As part of its consolidation program, the University of Phoenix will leave two other locations: a 30,000-square-foot space on Flamingo Road near the 215 Beltway and another between Buffalo Drive and Summerlin Parkway.  Apollo Group, which owns the multi-campus school specializing in professional education, is looking to trim costs after recording a 26 percent dip in net income this year.

In other news, regulators are preparing to open the door to stepped-up development intended to boost the Lake Tahoe area’s sagging tourism business, the Las Vegas Sun reports. The joint Regional Planning Agency of California and Nevada is considering an update of the current regional plan that would permit larger projects on the lake’s shore. The revised plan would attempt to expand development opportunities while respecting environmental concerns, the Sun reports.

Image courtesy of xtri.com

Company Linked to Dell Pays $93M for Pair of M-F Properties

By Alex Girda, Associate Editor

WTI Inc., an entity with ties to computer manufacturer Dell, has paid $93 million for a pair of Las Vegas multi-family properties, VegasINC.com reports. The Renaissance Villas complex on West Tropicana Ave. commanded $75 million, while the Esplanade near South Durango Drive fetched $18 million. The seller’s identity was not immediately available.

Completed in 1989, the 840-unit Renaissance Villas was renovated in 2006. Community amenities include high-speed internet access, jogging trails, picnic area with barbecue, swimming pools, hot tub, fitness center, and tennis and volleyball courts. In-unit amenities include all-electric kitchens, walk-in closets, appliances, private balconies and patios.

At the Esplanade, located seven miles away, WTI bought 163 rental units. The complex’s other 219 units are condominiums that were not included in the transaction, VegasINC.com explained.

VegasINC.com speculates that WTI is a stand-in for Dell, which bought WTI’s sister company, San Jose-based Wyse Technology, earlier this year for a rumored $1 billion. State records indicate that WTI previously operated under the name Wyse Technology Investments Inc. and shares a San Jose address with Wyse Technology, the online publication noted.

Image courtesy of renaissancevillasapts.com

Henderson Stadium Developer Wants New Deal; Officials Suspect Fraud

By Alex Girda, Associate Editor

International Development Management CEO Chris Milam, the would-be builder of a sprawling sports complex in Henderson, told city officials that he is walking away from his development agreement because of funding problems.  Milam insists that the project is still viable but that he needs a new deal with the city, Vegasinc.com reported.

Milam had delivered the balance of the land’s $10.6 million purchase price to U.S. Bureau of Land Management. On Nov. 29, Henderson City Attorney Josh Reid sent a letter to BLM officials, asking them to cancel the sale of 480 acres of federal land to Silver State Land L.L.C., an entity controlled by Milam, because of suspected fraud. Reid said that Milam has been marketing the property as a potential site for mixed-use or residential projects in conflict with his stated intentions to develop multiple sports facilities.

In an effort to demonstrate his seriousness, Milam responded that he has already invested millions of dollars on consultants’ fees and spent several years attempting to bring sports franchises to the area, according to Vegasinc.com.

As recently as April, Milam informed the Henderson city council that he had secured a $650 million funding commitment from China Security & Surveillance Technology, a Chinese company, for a 17,500-seat arena geared to a National Basketball Association franchise. That venue was to be the vanguard of a complex that would include baseball, football and soccer stadiums.

As Vegasinc.com noted, development of multiple sports venues in a single location is extremely rare, if not unprecedented. Moreover, the major sports leagues have long been reluctant to bring teams to Las Vegas.

Image courtesy of southwest.construction.com

South 15 Partners Eyes 2 MSF Industrial Complex Near Henderson Airport

By Alex Girda, Associate Editor

In a move that paves the way for development of a 2 million-square-foot industrial complex, the Henderson city council has approved the sale of 150 acres near the Henderson Executive Airport. According to VegasINC, South 15 Partners L.L.C., the developers, paid $13.6 million for the parcel. The project would be the submarket’s first large-scale industrial development in many years.

Led by former homebuilder Terry Manley and Mike Dean, the founder of contracting company M.J. Dean Construction, South 15 Partners will add its newly acquired property to an adjacent site it already owns. South 15 has a neighboring 10-acre site under contract as well. The industrial project would encompass the newly created 170-acre parcel.

Dubbed South 15 Airport Center, the complex would include 14 industrial buildings, including a 300,000-square-foot FedEx distribution center. Groundbreaking is scheduled for spring of 2013.

According to VegasINC, South 15’s plan includes the option of selling individual parcels to end users looking for build-to-suit development sites. When completed, the project could create as many as 2,900 jobs.

Image courtesy of Google Maps.

Excalibur Unveils New Food Court at Castle Walk

By Alex Girda, Associate Editor

From celebrity chefs’ bistros to casual eateries and fast-food restaurants, the Las Vegas Strip offers as wide a variety of dining venues as anywhere in the United States. In a bid to capture the largest possible share of the area’s dining dollars, the Excalibur is expanding its food options.

Recently the MGM Resorts International property unveiled Castle Walk Food Court, which brings together many of the best-known quick-service brands, some of which are making their debuts here. Castle Walk complements the resort’s 3,981-key hotel and 100,000 square feet of gaming space located at the corner of Tropicana and Las Vegas Boulevard.

The new dining spots include:
- Auntie Anne’s Pretzels
- Cinnabon – the first Strip appearance for the baked goods franchise
- Krispy Kreme
- McDonald’s
- Pick Up Stix – the only Las Vegas location for the Asian-themed chain
- Popeye’s
- Pizza Hut Express
- Popcornopolis gourmet popcorn
- Schlotzkys Deli – sandwiches, pizza and salads
- Starbucks
- Tropical Smoothie Café – also features toasted wraps, sandwiches, and salads.

Jump-Starting Stalled Projects Could Revive Development

By Alex Girda, Associate Editor

Las Vegas is searching far and wide for its development future—including in its recent development past. As VegasINC magazine reported recently, a number of large-scale projects that have been stalled for years by the Great Recession may be getting a new lease on life.

Projects like General Growth Properties Inc.’s Shops at Summerlin in the retail sector and Vantage Lofts and Manhattan West on the residential side are among the most recent examples. Although the visibility of these and other projects that were halted in midstream has long been a sore point, their incompleteness could finally be an advantage. If properly preserved, the developments have a head start on construction, thus reducing the time and money necessary for completion compared to a ground-up project. However, hurdles can still crop up, including the determination of whether permitting is up to date and, in some cases, who rightfully owns the property.

Meanwhile, some other high-profile projects await attention.Topping the list are the Echelon, the partially built hotel, casino, retail and convention center complex that has been delayed for four years; and the Fontainebleau, a $2.9 billion, 3,889-key hotel and casino. At 68 stories tall, the property would make a mark on the city’s skyline.

A number of multi-family developments have also lost traction over the years, but the improving residential market could soon start rekindling interest in those projects as well.

Image courtesy of user Lasvegaslover via Wikimedia Commons

Calida Moves to Revive Stalled $350M Manhattan West Project

By Alex Girda, Associate Editor

Four years after its original developer filed for bankruptcy, the $350 million Manhattan West condominium project may be getting new life. The Calida Group is moving to acquire the stalled 700-unit development on Russell Rd., the Las Vegas Review-Journal reports.

Expected to fetch between $21 million and $23 million, the deal was spurred by the comeback of the area’s housing market. For its part, Calida Group is making a bid to join the ranks of Nevada’s most active multi-family developers, according to the Review-Journal. The company’s other major local projects include a 360-unit upscale apartment complex in Henderson.

Manhattan West’s original developer, Gemstone Development, planned a 12-building mixed-use project that was to include 150,000 square feet of office space and 50,000 square feet of retail space as well as 700 condo units. According to the Review-Journal,  the residential units were priced in the $400,000 range, or about $300 per square foot. Floor plans and amenities aimed to emulate Manhattan-style characteristics.

Manhattan West eventually hit financial troubles when Gemstone allegedly found faulty construction work at the site. A dispute with the project’s general contractor, Apco Construction, led to serious funding issues that caused the project’s shutdown.

Image courtesy of lasvegasrealestatehome.com

Dispute Over Harmon Tower Reaches Nevada Supreme Court

By Alex Girda, Associate Editor

The legal battle between MGM Resorts International’s CityCenter project and the general contractor on the troubled Harmon tower has reached the Nevada Supreme Court. According to VegasINC, the representatives of the $8.5 billion development have requested that the court overturn a ruling that would delay the demolition of the $275 million, 26-story Harmon tower.

CityCenter initially announced plans to demolish the problem-plagued tower and cut its losses on August 15, 2011. Clark County District Court Judge Elizabeth Gonzalez put the brakes on that plan in July when she ruled that CityCenter is prohibited from using extrapolation techniques in its attempt to prove that the building is defective beyond any use.

CityCenter made its case by hiring structural engineering expert Gary Hart to evaluate 397 of the building’s main structural elements. Hart concluded that 396 of the components were faulty. Based on his experience, he extrapolated that an additional 1,072 structural elements were compromised. Gonzalez based her ruling on the argument that the 397 components examined by Hart were not chosen randomly.

The Harmon tower has had a difficult history. Problems in early phases of construction reduced the planned number of stories from 49 to 26, eliminating plans for a residential component to the project.

Photo courtesy of user Cygnusloop99 via Wikimedia Commons.

Two Years On, $8.5B CityCenter Seeks to Reach its Potential

By Alex Girda, Associate Editor

Two years after opening in the midst of an economic downturn, MGM Grand’s $8.5 billion CityCenter project is still seeking to reach its potential as a game changer for Las Vegas. To begin with, the investment added 5,900 hotel rooms to the city’s inventory at a time when visitors declined 2.85 million over two years, the Las Vegas Sun reports.

The Sun also points out that out that CityCenter also gambled on luxury, yet in a relatively subdued economic environment, hotel operators were required to offer discounted room rates;  meanwhile, some upscale condominiums continue to sit on the market at reduced asking prices.

Crystals, a 500,000-square-foot retail center, has an 88 percent occupancy rate as the recession has curtailed leasing activity.  Other major components of CityCenter include the Aria Resort & Casino, the 500,000-square-foot Crystals retail and entertainment district, the Mandarin Oriental hotel and condo tower, the Vdara hotel condo tower and the 37-stoy Veer Towers condo complex.

Still, as the Las Vegas market tries to find a way to surmount high-profile mishaps like the stalling of the Harmon tower complex—the subject of a legal battle between MGM Grand and its contractor—a new emphasis on the arts and the resurgence of Downtown likely bodes well for the long term.

Image courtesy of citycenter.com

Home Prices Continue 8-Month Rebound: Realtors Report

By Alex Girda, Associate Editor

Continuing its turnaround, Las Vegas’ housing market has recorded eight consecutive months of increasing prices, a trend fueled mainly by diminishing supply and a record number of short sales, the Greater Las Vegas  Association of Realtors reported..

In September, 3,298 homes, condo units and townhomes changed hands—about 400 fewer than during the previous month. However, the median price increased 1.4 percent from August to September. Short sales accounted for 44.8 percent of transactions in September.

The uptick in pricing reflects a continuing contraction of supply, which declined slightly from 3,830 condominiums and townhomes in August to 3,805 in September. Last month’s figure also reflects an even more telling decline of 7.8 percent compared to Sept. 2011. Homes listed for sale with no pending or contingent offer also dropped 1.0 percent from the previous month.

According to Kolleen Kelley, president of the local Realtors’ chapter, the market should continue to improve provided that the lid stays on supply. “If you look at the asking prices of homes being listed for sale, they’re up across the board by double digits compared to this time last year,” she noted.

Telecom’s Planned Data Center Joins Growing Local Pipeline

By Alex Girda, Associate Editor

In the competition for data center development, Nevada has often come in second to Texas and other competitors. But the Silver State’s reputation as an also-ran in this field may be changing. Telecom Real Estate Services unveiled plans for the Block Data Center, a project that is set to offer 13.8 megawatts of capacity.

According to DataCenterKnowledge.com, Telecom will retrofit an existing 50,000-square-foot building through a two-phase buildout. Part one calls for 10 megawatts of power and four independent 7,500-square-foot suites, each providing 1.2 megawatts of uninterruptible power supply. Telecom expects healthcare companies to be the primary tenants.

Kevin Keating, Telecom’s CEO, explained that tenants may either finance improvements themselves or turn over the work to Telecom for a premium.

Telecom’s plans add to a growing pipeline includes such local projects as Cobalt Data Centers’ planned facilities of 34,000, 64,000 and 388,000 square feet.

Cobalt’s first project, a renovated building on West Cheyenne Ave., is scheduled to open in December, VegasINC magazine reported.

Image courtesy of blockdatacenter.com